Financial Performance - The company's net profit for the first half of 2024 reached RMB 18.25 billion, with a dividend distribution of RMB 0.265 per share[3] - The company did not conduct any profit distribution or capital reserve conversion during the mid-term of 2024[3] - The company's financial report for the first half of 2024 was prepared in accordance with International Financial Reporting Standards (IFRS) and reviewed by KPMG[3] - The company's total assets as of June 30, 2024, were not disclosed in the provided content, but the financial data includes consolidated figures from subsidiaries[3] - Total assets of the group reached RMB 737.92 billion as of June 30, 2024[10] - Total deposits amounted to RMB 507.71 billion[10] - Total loans reached RMB 379.92 billion[10] - Non-performing loan ratio increased to 1.59%, up by 0.36 percentage points from the end of the previous year[10] - Provision coverage ratio decreased to 224.01%, down by 84.29 percentage points from the end of the previous year[10] - Capital adequacy ratio and tier-1 capital adequacy ratio stood at 16.02% and 13.86% respectively[10] - The bank's operating income for the first half of 2024 was RMB 6,398.182 million, a decrease of 11.93% compared to the same period in 2023[16] - Net profit attributable to shareholders for the first half of 2024 was RMB 3,169.894 million, a decrease of 11.53% compared to the same period in 2023[16] - Total assets increased by 4.10% to RMB 737.92 billion as of June 30, 2024, compared to RMB 708.85 billion at the end of 2023[17] - Customer loans and advances (excluding accrued interest) grew by 7.00% to RMB 379.92 billion as of June 30, 2024, compared to RMB 355.07 billion at the end of 2023[17] - Customer deposits (excluding accrued interest) increased by 4.23% to RMB 507.71 billion as of June 30, 2024, compared to RMB 487.09 billion at the end of 2023[17] - Net profit decreased by 8.07% to RMB 3.38 billion in the first half of 2024, compared to RMB 3.68 billion in the same period of 2023[26] - Non-performing loan ratio increased to 1.59% as of June 30, 2024, compared to 1.23% at the end of 2023[22] - Provision coverage ratio decreased to 224.01% as of June 30, 2024, compared to 308.30% at the end of 2023[22] - Capital adequacy ratio improved to 16.02% as of June 30, 2024, compared to 15.85% at the end of 2023[20] - Core tier 1 capital adequacy ratio increased to 13.83% as of June 30, 2024, compared to 13.62% at the end of 2023[20] - Net interest margin (annualized) decreased to 1.40% in the first half of 2024, compared to 1.73% in the same period of 2023[18] - Cost-to-income ratio increased to 31.40% in the first half of 2024, compared to 28.86% in the same period of 2023[18] - Revenue for the reporting period was RMB 63.98 billion, a decrease of 11.93% year-on-year[27] - Net profit was RMB 3.38 billion, a decrease of 8.07% year-on-year, primarily due to market interest rate declines and policy-driven financial support for the real economy[27] - Net interest income was RMB 4.70 billion, a decrease of 12.26% year-on-year, influenced by LPR rate cuts and support policies for the real economy[29][30] - Net interest margin decreased to 1.34%, down 0.34 percentage points year-on-year, while net interest yield fell to 1.40%, down 0.33 percentage points[31] - Average yield on interest-earning assets was 3.32%, down 0.39 percentage points year-on-year, driven by lower loan interest rates and bond investment yields[31] - Average cost rate of interest-bearing liabilities was 1.98%, down 0.05 percentage points year-on-year, due to effective deposit cost control measures and utilization of central monetary support tools[31] - Customer loans and advances generated interest income of RMB 7.41 billion, with an average yield of 4.02%, down from 4.63% in the same period last year[33] - Customer deposits contributed interest expense of RMB 4.50 billion, with an average cost rate of 1.84%, down from 1.93% year-on-year[33] - Total interest-earning assets averaged RMB 672.05 billion, with interest income of RMB 11.16 billion, down 2.94% year-on-year[33] - Total interest-bearing liabilities averaged RMB 653.78 billion, with interest expense of RMB 6.46 billion, up 5.20% year-on-year[33] - Interest income decreased by RMB 3.38 billion (2.94%) year-on-year to RMB 11.16 billion, primarily due to a decline in loan yields[35][36] - Customer loans and advances interest income decreased by RMB 617 million (7.69%) to RMB 7.41 billion, with the average yield dropping from 4.63% to 4.02%[36][38] - Financial investments interest income increased by RMB 182 million (6.02%) to RMB 3.21 billion, driven by a RMB 25.81 billion increase in average balance[39] - Interest income from reverse repurchase agreements, placements, and loans to other financial institutions rose by RMB 106 million (47.42%) to RMB 329 million, due to increased investment and higher market interest rates[40][41] - Interest expenses increased by RMB 319 million (5.20%) to RMB 6.46 billion, with customer deposits accounting for 69.71% of total interest expenses[42][43] - The average cost rate for customer deposits decreased from 1.93% to 1.84%, contributing to a RMB 34 million increase in interest expenses[43] - Issued bonds interest expenses increased by RMB 22 million, with the average cost rate rising from 2.50% to 2.58%[43] - Interest expenses from central bank borrowings, reverse repurchase agreements, and other financial institutions increased by RMB 151 million, with the average cost rate dropping from 2.50% to 2.39%[43] - Customer deposit interest expense increased by RMB 0.34 billion, a 0.77% year-on-year growth, driven by deposit scale expansion[46] - Total customer deposit interest expense reached RMB 4.504 billion, with an average cost rate of 1.84% in 2024, compared to 1.93% in 2023[45] - Issued bond interest expense rose to RMB 0.93 billion, up by RMB 0.22 billion year-on-year, with a cost rate increase of 0.08 percentage points[47] - Central bank borrowing interest expense surged by 48.98% to RMB 0.46 billion, due to increased re-lending and MLF scale[48] - Non-interest net income decreased by 11.02% to RMB 1.695 billion, primarily due to a 37.25% drop in fee and commission net income[50][51] - Trading net income increased by 36.07% to RMB 0.849 billion, driven by market interest rate declines and financial asset fair value changes[54] - Financial instrument net income fell by 31.12% to RMB 0.510 billion, mainly due to decreased investment income from asset management plans[55] - Operating expenses decreased by 4.55% to RMB 2.058 billion, with employee costs dropping by 6.88%[56][57] - Employee costs accounted for 70.80% of total operating expenses in 2024, down from 72.57% in 2023[58] - Employee expenses decreased by RMB 1.08 billion, a 6.88% decline compared to the same period last year[59] - Depreciation and amortization remained stable at RMB 208 million, a slight decrease of RMB 9 million[60] - Expected credit loss for customer loans and advances was RMB 899.36 million, down 18.13% year-on-year[60] - Financial investment credit loss reversed by RMB 26.18 million, a significant decrease of RMB 57.73 million compared to last year[62] - Income tax expenses decreased by RMB 244.43 million, a 75.64% drop, with an effective tax rate of 2.28%[63][64] - Total assets increased by RMB 29.07 billion, reaching RMB 737.92 billion, a 4.10% growth driven by loan and financial investment expansion[65] - Net customer loans and advances grew by RMB 24.73 billion, a 7.22% increase, totaling RMB 367.24 billion[67] - Buyback financial assets and placements with banks and other financial institutions increased by 2.78% to RMB 18.06 billion[69] - The proportion of customer loans and advances to total assets rose to 49.77%, up from 48.32% at the end of 2023[66] - Financial investments accounted for 41.27% of total assets, slightly down from 42.49% at the end of 2023[66] - The company's total financial investments amounted to RMB 304.561 billion, an increase of RMB 3.343 billion (1.11%) compared to the end of the previous year[71] - Bonds issued by central and local governments accounted for 79.24% of the total bond holdings, amounting to RMB 216.674 billion[73] - The company's total liabilities reached RMB 678.011 billion, an increase of RMB 26.646 billion (4.09%) from the previous year, primarily driven by growth in customer deposits[75] - Customer deposits totaled RMB 516.393 billion, with personal deposits accounting for 60.46% and corporate deposits accounting for 38.01%[77][78] - The company's shareholder equity increased by RMB 2.421 billion (4.21%) to RMB 59.909 billion, mainly due to growth in retained earnings[81] - The company's largest bond holdings include "21 附息國債 02" with a face value of RMB 9.280 billion and "21 附息國債 09" with a face value of RMB 6.400 billion[74] - The company's liabilities from selling repurchase financial assets and interbank placements decreased by RMB 4.425 billion (11.23%) to RMB 34.978 billion, mainly due to increased borrowing from the central bank[79][80] - Total shareholder equity reached RMB 59.91 billion, with a 4.21% increase compared to the end of 2023[82] - Unrestricted assets used as collateral for repurchase agreements and central bank borrowing amounted to RMB 59.32 billion[84] - Operating cash flow showed a net outflow of RMB 11.76 billion, a 7% decrease in outflow compared to the same period last year[85][86] - Investment cash flow turned to a net inflow of RMB 3.60 billion, a significant improvement from a net outflow of RMB 5.24 billion in the previous year[85][86] - Non-performing loans (NPL) increased to RMB 5.97 billion, with the NPL ratio rising to 1.59% from 1.23% at the end of 2023[87][88] - Normal loans increased by RMB 21.04 billion, accounting for 95.76% of total loans, up from 96.55% at the end of 2023[88][89] - The migration rate for normal loans was 3.15%, while the migration rate for substandard loans surged to 169.08%[89] - Corporate fixed-asset loans saw an increase in NPL by RMB 782 million, and corporate working capital loans increased by RMB 456 million[89] - Personal consumer loans experienced an increase in NPL by RMB 207 million[89] - The company's retained earnings stood at RMB 256.49 billion, reflecting a 5.48% increase compared to the end of 2023[82][83] - Total loans amounted to RMB 379.92 billion, with a non-performing loan (NPL) ratio of 1.59%, up from 1.23% at the end of 2023[90] - Corporate loans (excluding bill discounts) had an NPL ratio of 1.71%, an increase of 0.48 percentage points from the previous year[91] - Personal loans had an NPL ratio of 1.83%, up by 0.30 percentage points compared to the end of 2023[91] - Manufacturing sector NPLs reached RMB 1.21 billion, with an NPL ratio of 2.01%, an increase of RMB 0.32 billion from the previous year[93] - Wholesale and retail sector NPLs stood at RMB 1.18 billion, with an NPL ratio of 3.37%, an increase of RMB 1.14 billion from the previous year[93] - The hotel and catering industry had the highest NPL ratio at 22.83%, with NPLs amounting to RMB 736.6 million[92] - Real estate sector NPLs were minimal at RMB 52,000, with an NPL ratio of 0.00%[92] - Bill discounting loans totaled RMB 34.76 billion, accounting for 9.15% of total loans[90] - The construction sector had an NPL ratio of 0.07%, with NPLs amounting to RMB 15.79 million[92] - The transportation, storage, and postal sector had an NPL ratio of 0.24%, with NPLs of RMB 14.95 million[92] - Total loans amounted to RMB 379.92 billion, with non-performing loans (NPL) ratio at 1.59%, up from 1.23% at the end of 2023[94] - Mortgage loans accounted for 48.72% of total loans, with an NPL ratio of 2.10%, up from 1.59% at the end of 2023[94] - Loans in the Dongguan region accounted for 81.30% of total loans, maintaining a dominant position in the company's loan distribution[95] - The top ten single borrowers' loans totaled RMB 14.85 billion, accounting for 3.91% of total loans and 22.36% of the company's net capital[97] - Overdue loans increased to RMB 12.37 billion, representing 3.26% of total loans, up from 1.78% at the end of 2023[99] - Loans overdue within 3 months increased to RMB 8.01 billion, up from RMB 2.55 billion at the end of 2023[100] - Restructured loans increased to RMB 70 million, accounting for 0.02% of total loans, up from 0.01% at the end of 2023[102] - The single largest borrower's loan accounted for 4.42% of the company's net capital, below the regulatory limit of 10%[98] - The company's loan distribution remains concentrated in the Dongguan region, with RMB 308.87 billion in loans, representing 81.30% of total loans[95] - The company's loan portfolio is diversified across industries, with the largest exposure to the leasing and business services sector, accounting for 0.77% of total loans[97] - The company's non-performing loan balance increased to RMB 5.967 billion, up by RMB 1.667 billion from the previous year-end, with a non-performing loan ratio of 1.59%, an increase of 0.36%[104] - The company resolved RMB 1.754 billion in non-performing loans during the first half of 2024, including cash recovery of RMB 361 million, debt restructuring of RMB 2 million, write-offs of RMB 1.311 billion, and quality upgrades of RMB 81 million[104] - The company's capital adequacy ratio, Tier 1 capital adequacy ratio, and core Tier 1 capital adequacy ratio were 16.02%, 13.86%, and 13.83% respectively, all meeting regulatory requirements[107] - The company's core Tier 1 capital increased to RMB 57.932 billion, up from RMB 55.706 billion at the end of 2023[109] - The company's total risk-weighted assets amounted to RMB 414.542 billion, with credit risk-weighted assets accounting for RMB 378.967 billion[109] - The company's leverage ratio decreased slightly to 7.55% from 7.64% at the end of 2023[112] - The company's corporate banking business contributed 47.25% of total operating income, amounting to RMB 3.023 billion[114] - The company's retail banking business accounted for 35.96% of total operating income, with RMB 2.300 billion in revenue[114] - The company's off-balance sheet items included credit letters, guarantees, and unused credit card limits, with balances of RMB 3.93 billion, RMB 34.97 billion, and RMB 83.13 billion respectively[115] - Total financial guarantees and credit commitments decreased by 14.09% to RMB 20,536,407 thousand as of June 30, 2024, compared to RMB 23,904,678 thousand at the end of 2023[116] - Personal deposits increased by 5.51% to RMB 306.951 billion, and personal loans grew by 2.92% to RMB 126.999 billion as of the reporting period[121] - Corporate deposits rose by 3.34% to RMB 192.980 billion, and corporate loans (including bill discounts) increased by 9.17% to RMB 252.924 billion[124] - Manufacturing and related industry loans grew by 12.07% to RMB 68.033 billion, supporting the local economy[126] - International business settlement volume reached USD 3.910 billion, and client foreign exchange settlement amounted to USD 2.190 billion during the reporting period[127] - Small and micro enterprise
东莞农商银行(09889) - 2024 - 中期业绩